What to Know About Oil Sands Development in Canada
Posted October 01, 2018 09:23:00 Oil Sands development in Canada is booming, with a number of companies including the company Shell and Canadian Natural Resources Corporation in the oil sands industry, with the combined value of the companies projects totaling $11 billion.
In addition to Shell and CNRC, major oil and gas companies including ExxonMobil, BP, and Royal Dutch Shell are among those developing oil sands projects.
The Canadian Press analyzed data on the total number of oil sands oil sands leases granted by the Canadian government and the number of permits issued by the Department of National Defence.
We found that more than 90% of the leases granted to oil sands companies are in the northern region, which covers more than two-thirds of Canada’s territory.
In the northern part of Canada, the most productive oil sands fields are in northeastern Alberta, while in southern Alberta and the west, the industry is concentrated in the north.
In Alberta, Shell and Canada Natural Resources were the top two producers in the province in 2019.
The number of projects has more than tripled since 2006, with Shell and its subsidiary Natural Resources Corp. now the largest private sector producer of oil and natural gas.
The largest oil sands project in Canada was announced in 2017 by Royal Dutch Petroleum (RDP) and Royal Canadian Mounted Police (RCMP), with a total value of more than $6 billion.
The company plans to develop a large amount of oil fields and an adjacent shipping terminal at the base of the oil platform.
The Royal Dutch project has a total estimated cost of more of $4.4 billion, with RDP expecting to pay about $1.3 billion in royalties.
Shell and RDP were the first two companies to announce a large-scale oil sands exploration project in the northwest region.
In August 2017, Shell announced that it was considering developing a 1.2 million barrel-per-day oil sands development in the northwestern part of the province, which is home to the oilsands, the country’s largest oil reserves.
The Shell oil sands platform at a new refinery.
(AP Photo/Rick Wilking) Shell, a unit of British Petroleum (BP), and RDC have the largest share of oil production in Canada with nearly three-quarters of the total production, followed by Canadian Natural Resource Corporation (CNRC) and Total.
CNRC and Total had the second and third largest share in 2018.
Shell has the most oil production onshore in Canada, with more than 930,000 barrels per day (bpd) and 4,600,000 bpd in 2018, according to data from the Canadian Energy Research Institute.
The total value for the oil and mineral exploration in Canada has reached $1 trillion in 2017.
In 2018, RDP announced plans to increase the size of the exploration program, to 5,000,000 tonnes of oil equivalent per year, to be followed by RDP’s planned 4,400,000 Bpd oil sands production.
Shell was also awarded more than 4,000 exploration permits in 2019, while Total and RDM were granted more than 3,000 permits in 2018 and 722 in 2017, according the Canadian National Energy Board.
The oil and oil sands boom has resulted in job losses, as the number and type of jobs in the sector have declined.
According to the Canadian Association of Petroleum Producers (CAPP), the oil industry has lost more than 2,400 oil and chemical jobs since the oil boom began.
As of September 30, 2018, more than 13,000 of the approximately 1,300 jobs lost were related to oil and coal extraction.
According the Canadian Chamber of Commerce, there were nearly 4,700 full-time jobs lost in the Canadian oil and energy sector in 2018 compared to 9,800 jobs in 2019 and 12,100 jobs in 2020.
The decline in jobs is also being driven by the aging population, with many older Canadians retiring.
According a recent report by the National Employment Insurance Board (NEB), the number who are aged 65 and older, or those with disabilities, is expected to increase by about 10 million people by 2030.
In an attempt to meet these needs, the Canadian Oil Sands Association (COSSA), which represents the industry’s members, recently released a report outlining plans for an ambitious plan to increase investment in Canada’s oil sands sector.
The group, which has an estimated $15 billion in assets, will be launching an ambitious, multi-year plan to modernize the industry by developing new technologies, training new staff and developing a “deep, sustainable” business model.
As part of this initiative, the COSSA also is creating a “Coalition of Canada” to develop strategic partnerships and partnerships with oil sands firms, which will include the oil companies, as well as the federal government.
The COSAB also will be developing a strategic plan for the Canadian economy, which would look at how to increase employment and boost economic growth in the energy sector.
In its report, the group also outlines the